Richemont injects 100 million euros into Delvaux

Richemont is stepping in again to help its Belgian subsidiary Delvaux. The Swiss luxury group is converting a debt of 100.6 million euros into equity, but the handbag maker’s structural challenges remain.

Loss-making growth

To stabilize the weakened balance sheet, Richemont is bolstering the leather goods manufacturer’s equity. The move follows an earlier capital injection in October 2022, when Delvaux received a 90 million euro loan. That occurred shortly after the Swiss group paid 178 million euros in 2021 to acquire the Belgian luxury brand.